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Commercial Lines
Dave Otto, Tom Hettinger, Serhat Guven, and Brett Nunes are market leaders renowned for their pricing expertise. Supporting the directors, EMB has a number of senior consultants with significant pricing experience heading up dedicated teams of personal and commercial lines specialists.
Together, we are available to provide advice on all aspects of pricing, whether these are technical, strategic/tactical, or process. Our specialist team is also available to work alongside our clients’ internal staff to help deliver pricing projects from small scale projects to large pan-European or worldwide initiatives.
Amongst others, our services include:
Data Foundation Activities
Innovative use of data and clever design of factors for analysis allows you to unlock the potential of your data. This is particularly true of personal lines products where fierce competition requires you to strive for ever-greater sophistication in pricing. It is also very pertinent to commercial lines products, where the generally poorer data quality calls for the clever design of factors to maximize the quality of the analysis from limited data.
We regularly advise our clients on pricing data requirements, data specification, data manipulation, data augmentation, and the use of external data.
We also advise our clients on the design of data capture for new products to ensure that data of sufficient quality and type is available for future technical pricing activities.
Leading-edge Technical Pricing Analyses
Using Generalized Linear Modeling techniques within EMBLEM, and other complementary approaches including proprietary hybrid methodologies, we assist our clients in investigating both the cost (risk premium) and demand (renewals and New Business) elements of technical pricing.
The unique methodology encapsulated within Classifier allows our clients to make accurate assessments of underlying geographical risk, and thereby generate market-leading allocations of postcodes to rating districts.
We offer both technical and peer review services.
Market Competitiveness Analyses
We advise our clients on augmenting pricing analyses through using market data, the techniques required to investigate competitive pricing and positioning, and how to incorporate these analyses into their overall pricing process.
Business Impact Analyses, Scenario Testing and Migration Strategies
We recognize that, important though it is, it is not enough just to calculate the technical price for a particular risk. You also need to know the street price and what this means to your customers as well as your business.
We assist our clients in investigating the best ways to implement the results of their technical pricing analyses, incorporating risk premium models, demand models and market models to achieve their strategic objectives.
The balance between profitability, long-term value, volume, and portfolio mix can all be investigated to assess the impact of any strategy on renewing books and new quotes.
Relationship Management and Specific Targeting/Marketing
We assist our clients in identifying segments with particular characteristics, for example, those that may be particularly profitable or those that may be experiencing large price changes.
Identification of such segments allows relationship management and targeting activities to be carried out in advance of any implementation of rating strategies.
Pricing Management Information
We advise our clients on the design and implementation of management information to monitor the performance of prices from selected strategies in terms of volume, mix and emerging experience.
Pricing Control Cycle, Process, Roles and Responsibilities
We advise our clients on the design and implementation of control cycles around pricing, covering not only the process but also the various roles and responsibilities of key individuals and teams.
Price Optimization
We provide price optimization techniques to our clients through a range of approaches from iterative scenario-testing all the way through to individual risk mathematical optimization, supported by both Rate Assessor and EMB Optimiser.
Rating Engine Development
We advise our clients on the design of rating engines for both personal and commercial lines. We have also built quote engines for small commercial business that have been tremendously successful in the live environment.
Pricing Healthchecks
We perform peer-review services for our clients of their internal pricing processes, including underwriting, pricing techniques and the design/structure of their rates. As part of this pricing “healthcheck”, we advise on market best-practice and recommend steps to move towards that best-practice.
Integrating Pricing Models with Capital Models
We can assist in integrating results from capital models into pricing models in order to assess return on capital targets and for performance measurement.
Marketing Analytics
With ever-increasing marketing budgets for acquiring and retaining customers, we have developed a range of techniques for helping assess where to target that marketing spend in order to get best value for money.
Training
We provide comprehensive training courses in pricing techniques and in the use of our specialist pricing software catering for all levels of experience. Also available are general courses in pricing processes and best practice.
Additionally, we provide advice on:
• affinity relationship pricing and terms
• launching new products
• the interaction between pricing and underwriting
• the interaction between pricing and reserving
• in conjunction with our management consultancy team, we offer broader strategic advice on channel and distribution strategy
For more information on EMB’s Personal and Commercial Lines Pricing services, please contact Tom Hettinger, Dave Otto, Serhat Guven or Brett Nunes.
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